After Tesla's success in dazzling investors, China’s Neo is another star in the electric car industry’s sky with a fantastic growth story in 2020 that tells of strong gains, record sales and ambition to compete with the world's largest electric vehicle maker.
p> The six-year-old Chinese company is seeking to compete with the American Tesla, but it still has a long way to go to catch up with the company tweeting out of the auto industry with a market value of more than half a trillion dollars and about 550% gains this year.
and with optimism about the electric car industry and the global trend of new energy vehicles, the share of the Chinese company rose by more than 1000% this year, to strengthen New's role as a competitor to Tesla in the electric car sector in China, as both companies benefit with the decline Coronavirus pandemic in the world's largest market for this industry.
and as is the case with this sector, the beginnings were not easy as Neo suffered at its inception from huge financial crises, and the stock traded mostly below the IPO price on the New York Stock Exchange in September 2018, but the support of the Chinese government contributed to the recovery The company that was on the verge of collapse, but the rapid development of New and reducing losses slowly gradually made it a step away from achieving profitability, which indicates that it is on the path of Tesla, which also suffered difficulties before reaching profits.
Standard Numbers
New continued records during the third quarter of this year, delivering about 12,206 thousand electric cars for the first time ever, bringing the total deliveries this year so far to 26,375 thousand cars, as China continues to recover from the outbreak Coronavirus, and an influx of consumers into new energy vehicles.
This was of course reflected in the revenues of the Chinese company, which rose by more than 146% during the third quarter on an annual basis, to reach $ 666.6 million, while it recorded quarterly losses of 14 cents per share, which means that it reduced its losses by about 60% on the same quarter last year, and that was good enough to beat Wall Street analysts' estimates of $ 0.17 loss per share.
The company's chief financial officer, Stephen Wei Feng, expects Neo's sales to increase again in the fourth quarter, to between 16,5 and 17,000 cars, generating between $ 922 and $ 948 million.
Leap arrow
About 12 months ago, Niu was on the verge of collapse when the stock reached an all-time low of $ 1.36, amid dwindling cash flow and weak sales, but a year that was a curse on the world turned into the Chinese company's best blessing. The stock is currently standing at record levels above $ 55.
There is no other company better than Neo to illustrate the rapid shift in consumers 'and investors' perceptions of electric cars, with Neo’s share rising since the beginning of this year by more than 1,300%, pushing the company's $ 75 billion market value above one giant The car industry in the world General Motor.
(Neo stock's performance since ...
